Federal Reserve official again criticizes the crypto market: doubts about trading practicality

【Crypto World】A Federal Reserve regional bank president has consistently shown a less-than-friendly attitude towards crypto assets. A review of his public statements over the years reveals the pattern—calling it a “farce” in 2018, upgrading to a “huge trash can” in 2020, and in 2021, making even harsher remarks, stating that “95% of the market is fraud, speculation, noise, and chaos.”

This official’s criticisms are not unfounded. He pointed out that investors are being exploited in the market, and even expressed a positive view of the 2022 market crash, believing that market cleansing is beneficial for risk control. Most recently, in October 2024, he raised a sharp question: where is the real trading demand for crypto assets? His view is that, unless involved in drug trafficking or other gray areas, everyday use cases are few and far between.

For participants looking to enter the crypto market, these voices are worth considering. The SEC’s regulatory actions have also been praised by this high-ranking official, and regulatory measures may continue. Amid market volatility, understanding policymakers’ true attitudes can help with risk management.